Events: ABA Graduate Commercial Lending School Curriculum

Banking and the Economy
Will new federal programs to support commercial real estate loans and business recovery continue? When does the government exit from its monetary stimulus strategy? What extraordinary reshaping of the financial services industry is still to come? Get answers to questions like these and predictions of what's ahead from a Federal Reserve senior research officer.

Inside the Industry: Regulatory Panel Discussion
Gain the knowledge to comply with critical new capital, appraisal, and regulatory requirements in a very changed marketplace. Speak with the regulators directly at this special panel, including officials form the Comptroller of the Currency, Office of Thrift Supervision, and the Federal Deposit Insurance Corporation. Understand lending challenges from a regulators' perspective, and get a better handle on how to address their inquiries and compliance requests. Ample time will be set aside for questions and your suggestions.

Credit Risk Management
Are you following a strategic framework for making a portfolio decision, considering loans not just on their own merits but in terms of their overall impact on your bank? Examine risk management and associated regulatory compliance expectations with an eye towards a holistic risk management framework. Get introduced to tools and resources that can help your bank build a risk management culture that succeeds in today's tumultuous economy.

Managing Risk Through Credit Culture
What are the components of a credit culture? What is the credit culture at your bank? Is it in alignment with your bank's goals? Get introduced to four types of credit cultures, and understand how to assess and type the one that fits your bank. Review the components of a quality credit culture. Identify which credit strategies, policies, and procedures might need to change at your bank to make them best in class.

Funding Sources
With capital increasingly scarce, do you have a complete understanding of the various sources of loan funding as well as their costs and risk structures? Gain insights into capital planning, retail funding, and the costs and risks of various borrowings. Understand various methods of indexing loan rates, asset and liability matching, and liquidity management--all as they relate to loan funding. A brief overview of a loan pricing methodology is presented with emphasis on developing and improving your bank's loan pricing programs.

Commercial Real Estate Risk Management
Commercial real estate (CRE) loans are a large percentage of the capital base of many banks, so credit discipline and an effective risk management system are critical. Understand the key components of an effective CRE policy, including portfolio limits, lending authorities, tracking of policy exceptions, valuations and environmental risk. Review CRE regulatory guidance policies, and learn a "gap analysis" procedure to help your bank monitor progress and ensure regulatory compliance with CRE portfolio concentrations.

Strategic Loan Pricing
If you want to successfully restructure troubled debt and compete for new lending deals, you need a strategic approach to loan pricing. Learn how to price so that you cover the costs associated with making and monitoring the loan while also accounting for your profit objectives. Discover how to differentiate loan interest rates and fees to reflect relative risks and the "fit" of the loan to your portfolio objectives. Learn about risk-based pricing models and other tools than can improve deal-by-deal spreads. Use of indexes and pricing model calculations will be introduced.

Problem Loan Scenarios and Analysis
With the ripple effect of a slowing economy still to show up in many commercial loans, now is the time to learn how to identify early warning signals. Understand how expected good transactions go bad if certain lending factors are not fully developed at the time of loan underwriting. Common banker mistakes that contribute to problem loans and losses will be identified, along with various current war stories that underscore the financial, management, operational, and banking pitfalls that can turn good loans sour. Get a better handle on best practices to streamline loan modifications and stay in compliance.

Problem Loan Management
With a large overhang of troubled commercial debt, many bankers need to know how and when to respond when credit quality deteriorates. Examine various approaches to enhance management of problem loans, including what's working with policies, procedures, and people. Get tools and resources that can help you in restructuring troubled debt.

Commercial Relationship Management
Long an integral part of retail banking, cross-selling is a more recent development in commercial lending. In today's competitive environment, you should be familiar with the transactional, investing, and long-range planning needs of your clients. Receive practical tools for scheduling and planning contact with clients. Learn tested ways to document relationship information, engage business partners, and monitor your sales progress. Try out tools and high impact sales techniques that will turn your future sale calls into good deals for your bank.

Best Practices for Avoiding Potential Lender Liability Issues
How do you take control of a borrower's business while avoiding a potential lender liability issue? What are the best practices for avoiding issues? Learn how to identify lending actions or practices that constitute misconduct and expose your bank to a lender liability claim. Recognize the impacts of disclosure and get checklists that will help you demonstrate proper file documentation. Learn when and how to get involved in a borrower's business while avoiding excessive control provisions that could lead to a lender liability claim.

Banking and Credit Outlook
How and when does the government implement an exit from its monetary stimulus strategy? What extraordinary reshaping of the financial services industry is still to come? Get answers to questions like these as you learn of current macro and micro economic trends that will impact the financial services industry, your job, and your ability to manage and control credit risk.

Hot Topics: A Discussion of Today's Lending Issues and Best Practices
What are the guidelines for holding classified assets as a percentage of Tier 1 capital? What are the compliance procedures for accounting for Troubled Debt Restructuring? What are the impacts of new appraisal guidelines? How do you balance getting new loans with the time needed to work out current troubled loans? This is your chance to ask questions about bothersome issues like these-- in a dynamic, small-group setting. Get feedback and best practices to apply when you return to your office.

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Program Manager Gloria Pritchard-Becker.